THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.3A - ADMINISTRATION OF A COMPANY'S AFFAIRS WITH A VIEW TO EXECUTING A DEED OF COMPANY ARRANGEMENT

Division 3 - Administrator assumes control of company's affairs

SECTION 437D   ONLY ADMINISTRATOR CAN DEAL WITH COMPANY'S PROPERTY  

437D(1)  [Transaction affecting company property]  

This section applies where:

(a)  a company under administration purports to enter into; or

(b)  a person purports to enter into, on behalf of a company under administration;

a transaction or dealing affecting property of the company.

437D(2)  [Transaction void]  

The transaction or dealing is void unless:

(a)  the administrator entered into it on the company's behalf; or

(b)  the administrator consented to it in writing before it was entered into; or

(c)  it was entered into under an order of the Court.

437D(3)  [Exempt payments]  

Subsection (2) does not apply to a payment made:

(a)  by an Australian ADI out of an account kept by the company with the ADI; and

(b)  in good faith and in the ordinary course of the ADI's banking business; and

(c)  after the administration began and on or before the day on which:

(i) the administrator gives to the ADI (under subsection 450A(3) or otherwise) written notice of the appointment that began the administration; or

(ii) the administrator complies with paragraph 450A(1)(b) in relation to that appointment;

whichever happens first.

437D(4)  [Court order]  

Subsection (2) has effect subject to an order that the Court makes after the purported transaction or dealing.

437D(5)  [Contravention by officer]  

If, because of subsection (2), the transaction or dealing is void, or would be void apart from subsection (4), an officer of the company who:

(a)  purported to enter into the transaction or dealing on the company's behalf; or

(b)  was in any other way, by act or omission, directly or indirectly, knowingly concerned in, or party to, the transaction or dealing;

contravenes this subsection.